An exchange rate board in London on December 14. The US dollar has defied expectations and strengthened in recent months, though the euro looks poised to benefit once the US currency finally begins its expected decline. Photo: EPA-EFE An exchange rate board in London on December 14. The US dollar has defied expectations and strengthened in recent months, though the euro looks poised to benefit once the US currency finally begins its expected decline. Photo: EPA-EFE
An exchange rate board in London on December 14. The US dollar has defied expectations and strengthened in recent months, though the euro looks poised to benefit once the US currency finally begins its expected decline. Photo: EPA-EFE
Kerry Craig
Opinion

Opinion

Macroscope by Kerry Craig

Coronavirus recovery: why US dollar’s puzzling strength is only temporary

  • Investors expecting the currency to fade have been flummoxed by a reinvigorated US economy and a reassertion of the theme of US exceptionalism
  • Renewed dollar depreciation will come eventually from the fading sugar rush of fiscal stimulus and as other countries’ vaccine programmes catch up

An exchange rate board in London on December 14. The US dollar has defied expectations and strengthened in recent months, though the euro looks poised to benefit once the US currency finally begins its expected decline. Photo: EPA-EFE An exchange rate board in London on December 14. The US dollar has defied expectations and strengthened in recent months, though the euro looks poised to benefit once the US currency finally begins its expected decline. Photo: EPA-EFE
An exchange rate board in London on December 14. The US dollar has defied expectations and strengthened in recent months, though the euro looks poised to benefit once the US currency finally begins its expected decline. Photo: EPA-EFE
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Kerry Craig

Kerry Craig

Kerry Craig is a global market strategist at JP Morgan Asset Management.